Accelerated Settlement To T+1 Implementation Impacts Dividend Processes For 2027 And Beyond

What does this mean for dividends? 

In 2025 the government confirmed that settlement of trades would be accelerated to T+1.  This means that traded securities will typically settle one day after it is agreed, instead of the current two days. What is now confirmed is the change and impact this will have on dividend processes, both around the implementation date in 2027, and going forwards following publication of the London Stock Exchange (LSE) dividend procedure timetable for 2027.

Boards, investor relations teams and company secretarial functions are advised to consider their 2027 financial timetable and dividend planning processes now to accommodate these requirements. The Equiniti Dividend Planning team will be able to support clients with any questions and to assist in modelling 2027 dividend timetables as firms prepare for the transition to the new settlement cycle.

There are two important considerations we would like to highlight:

• Firstly, the transition period where the LSE advises issuers not to set ex-dividend dates between 4 and 18 October 2027. Dividend announcements and payment dates are not affected by this guidance.
• Secondly, to consider which date drives your dividend planning? The ex-dividend date, record date, or announcement date? Of note will be the weekday changes. Currently, ex-dividend dates normally fall on Thursday, with the associated record date on a Friday. Going forwards, Friday will be the normal day for both the ex-dividend date and record date. Announcement days will typically remain on Thursdays unless shown otherwise on the LSE dividend procedure timetable.

The details behind the change

On the 4 September 2026, the London Stock Exchange published its dividend procedure timetable for 2027.  This introduces operational changes arising from the UK's move to a T+1 settlement cycle on 11 October 2027.

• T+1 Settlement Change (from 11 October 2027): From that date, the ex-dividend date and record date will occur on the same business day, replacing the current practice where the ex-dividend date typically falls one business day before the record date.
• Transition Period (4 October to 18 October 2027): the timetable highlights a transition period between 4 October and 18 October 2027, during which securities will not be marked ex-dividend. This is to allow the market to transition to the new settlement cycle.
• First Ex-Dividend Date on T+1 (22 October 2027): Under the new T+1 rules the first ex-dividend date will be 22 October 2027.

The LSE advises issuers not to set ex-dividend dates between 4 and 18 October 2027. This also means not setting a record date between those dates. The final ex-dividend date under the current settlement cycle is 30 September 2027 (record date 1 October), while the first ex-dividend date under T+1 is 22 October 2027. Dividend announcements and payment dates are not affected by this guidance.